Bankruptcy is a process that allows consumers and businesses to repay some or all of their debts under the protection of the federal bankruptcy court. For the most part, bankruptcies can be divided into two types — liquidation and reorganization.
There are 3 types of bankruptcies:
Bankruptcy comes with serious consequences for your credit profile and most of the time it is not the best option for your credit and in the long run. It can prevent you from getting a home loan for up to 7 years after the filing date depending on the type of loan you are trying to receive.